Flounder Inc. was formed on July 1, 2017. It was authorized to issue an unlimited number of common shares and 100,000 shares of cumulative and non-participating preferred shares carrying a $2.00 dividend. The company has a July 1 to June 30 fiscal year. The following information relates to the company's shareholders' equity account. Common Shares Before the 2019-20 fiscal year, the company had 108,000 outstanding common shares issued as follows: 1. 2. 92,000 shares issued for cash on July 1, 2017, at $32 per share 4.700 shares exchanged on July 24, 2017 for a plot of land that cost the seller $65,800 in 2007 and had an estimated fair value of $206,800 on July 24, 2017 11,300 shares issued on March 1, 2018; the shares had been subscribed for $38 per share on October 31, 2017 3. Oct. 1 2019 Subscriptions were received for 9.400 shares at $43 per share. Cash of $81.700 was received in full payment for 1.900 shares and share certificates were issued. The remaining subscription for 7.500 shares was to be paid in full by September 30, 2020 and the certificates would then be issued on that date. Nov. 30. 2019 Dec. 15 2019 The company purchased 1.700 of its own common shares on the open market at $41 per share. These shares were restored to the status of authorized but unissued shares. The company declared a 5% stock dividend at the fair value of the shares for shareholders of record on January 15, 2020 to be issued on January 31, 2020. The company's common shares were selling at $52 per share on December 15, 2019. The company sold 470 of its own common shares for $20,680. June 20. 2020 Preferred Shares The company issued 47,000 preferred shares at $45 per share on July 1, 2017 Cash Dividends The company has followed a schedule of declaring cash dividends each year in December and June and making the payment to shareholders of record in the following month. The cash dividend declarations have been as follows since the company's first year and up until June 30, 2020: Cash Dividends The company has followed a schedule of declaring cash dividends each year in December and June and making the payment to shareholders of record in the following month. The cash dividend declarations have been as follows since the company's first year and up until June 30, 2020: Declaration Date Common Shares Preferred Shares Dec 15, 2018 $0.30 per share $3.00 per share June 6, 2019 $0.30 per share $1.00 per share Dec. 15, 2019 $1.00 per share "Includes dividend arrears of $2 from the 2017-18 fiscal year No cash dividends were declared to common shareholders during June 2020 due to the company's liquidity problems. Retained Earnings As at June 30, 2019, the company's Retained Earnings account had a balance of $675,000. For the fiscal year ended June 30, 2020, the company reported net income of $37.000. Balance Sheet (Partial) 44000 Jan. 2020 Dividends Payable 44000 Cash 44000 Jan. 31, 2020 Common Stock Dividends Distributable 257740 Common Shares 257700 June 20, 2020 Cash 18040 Common Shares 28040